China-focused buyer bids for Capilano

Jars of Beeotic honey are pictured at the Capilano honey factory. - AAP

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Australia's biggest honey producer, Capilano Honey, is set to be taken over by a private equity group specialising in China-focused agricultural exports.

Partnering in the $190 million bid for the 65-year-old Australian company is private equity fund Wattle Hill, which was co-founded by Albert Tse, the husband of Jessica Rudd, daughter of former Australian prime minister Kevin Rudd.

Capilano shares jumped 25 per cent to a two-year high of $19.5 after the honey group's board endorsed an offer from a consortium composed of private equity fund Wattle Hill and investment manager Roc Partners.

Wattle Hill has offices in Sydney, Hong Kong and Beijing and is focused on Australian businesses that are set to capitalise on booming Chinese middle class demand.

Former Packer family adviser Ashok Jacob is on Wattle Hill's investment committee.

Roc Partners was formed from a buyout of a Macquarie Group private markets business and has involvement in the Australian wagyu beef and oyster industries.

Capilano managing director Ben McKee said the consortium bid would give the company capacity to build up to a global-scale business.